Analysis of Reportable Segments
GE Aerospace operates in 2 segments: Commercial Engines & Services (CES) and Defense & Propulsion Technologies (DPT).
Segment Profit Margin
GE Aerospace, profit margin by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Commercial Engines & Services (CES) | 26.60% | 26.25% | 23.66% | 22.13% | — |
| Defense & Propulsion Technologies (DPT) | 12.28% | 11.19% | 10.13% | 12.22% | — |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The segment profit margins for Commercial Engines & Services (CES) and Defense & Propulsion Technologies (DPT) demonstrate distinct performance trajectories over the observed period. CES exhibits a consistent upward trend, while DPT displays more volatility.
- Commercial Engines & Services (CES)
- The CES segment experienced growth in profit margin from 2022 through 2025. Beginning at 22.13% in 2022, the margin increased to 23.66% in 2023, continued to 26.25% in 2024, and reached 26.60% in 2025. This indicates improving profitability within this segment, potentially driven by increased efficiency, favorable pricing, or a shift in product mix.
- Defense & Propulsion Technologies (DPT)
- The DPT segment’s profit margin showed fluctuations during the period. Starting at 12.22% in 2022, the margin decreased to 10.13% in 2023. A subsequent recovery was observed in 2024, with the margin rising to 11.19%. This upward momentum continued into 2025, reaching 12.28%. The initial decline followed by recovery suggests potential challenges in cost management or project execution in 2023, followed by corrective actions or a change in the project portfolio.
The divergence in trends between the two segments suggests differing market dynamics or internal operational factors. While CES demonstrates consistent improvement, DPT’s performance is more sensitive to external or internal pressures. Further investigation into the underlying drivers of these trends within each segment would be beneficial.
Segment Profit Margin: Commercial Engines & Services (CES)
GE Aerospace; Commercial Engines & Services (CES); segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment profit (loss) | 8,861) | 7,055) | 5,643) | 4,164) | —) |
| Revenues | 33,314) | 26,881) | 23,855) | 18,813) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 26.60% | 26.25% | 23.66% | 22.13% | — |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Segment profit (loss) ÷ Revenues
= 100 × 8,861 ÷ 33,314 = 26.60%
The Commercial Engines & Services (CES) segment demonstrated a consistent pattern of growth in both profitability and revenue between 2022 and 2025. Segment profit increased steadily over this period, while revenue exhibited strong expansion, contributing to improvements in the segment profit margin.
- Segment Profit
- Segment profit began at US$4,164 million in 2022 and increased to US$8,861 million by 2025. This represents a cumulative increase of 113.0% over the four-year period. The growth appears relatively consistent year-over-year, indicating a sustained positive trend in the segment’s earnings power.
- Revenues
- Revenues followed a similar upward trajectory, starting at US$18,813 million in 2022 and reaching US$33,314 million in 2025. This signifies a 77.1% increase in revenue over the same period. The rate of revenue growth accelerated between 2023 and 2024, and continued strongly into 2025.
- Segment Profit Margin
- The segment profit margin exhibited an improving trend. Beginning at 22.13% in 2022, it rose to 23.66% in 2023, then to 26.25% in 2024, and concluded at 26.60% in 2025. This indicates that the segment is becoming more efficient at converting revenue into profit. The margin improvement suggests effective cost management alongside revenue growth, or a shift in the revenue mix towards higher-margin products or services.
Overall, the CES segment’s financial performance between 2022 and 2025 was characterized by robust growth in both revenue and profitability, coupled with a strengthening profit margin. This suggests a positive operational and financial trajectory for the segment.
Segment Profit Margin: Defense & Propulsion Technologies (DPT)
GE Aerospace; Defense & Propulsion Technologies (DPT); segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment profit (loss) | 1,296) | 1,061) | 908) | 976) | —) |
| Revenues | 10,554) | 9,478) | 8,961) | 7,989) | —) |
| Segment Profitability Ratio | |||||
| Segment profit margin1 | 12.28% | 11.19% | 10.13% | 12.22% | — |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Segment profit (loss) ÷ Revenues
= 100 × 1,296 ÷ 10,554 = 12.28%
The Defense & Propulsion Technologies segment demonstrated a generally positive trajectory in financial performance between 2022 and 2025. Segment profit increased over this period, accompanied by consistent revenue growth. However, the segment profit margin experienced some fluctuation.
- Segment Profit
- Segment profit was not reported for 2021. Beginning in 2022, segment profit was reported at US$976 million. A decrease to US$908 million was observed in 2023, followed by increases to US$1,061 million in 2024 and US$1,296 million in 2025. This indicates a recovery and subsequent growth in profitability towards the end of the analyzed period.
- Revenues
- Revenues were not reported for 2021. In 2022, revenues totaled US$7,989 million. Revenues increased to US$8,961 million in 2023, and continued to grow to US$9,478 million in 2024. The most substantial revenue increase occurred between 2024 and 2025, reaching US$10,554 million. This consistent revenue growth suggests increasing demand or successful market penetration.
- Segment Profit Margin
- The segment profit margin was not reported for 2021. In 2022, the margin was 12.22%. A decrease to 10.13% was recorded in 2023, potentially due to cost increases or pricing pressures. The margin recovered to 11.19% in 2024 and further increased to 12.28% in 2025, reaching a level comparable to that of 2022. This suggests improved cost management or pricing strategies in the later years.
Overall, the Defense & Propulsion Technologies segment exhibited positive momentum in both revenue and profit. While the segment profit margin experienced a temporary dip in 2023, it demonstrated resilience and ultimately returned to a level consistent with prior performance.
Segment Capital Expenditures to Depreciation
GE Aerospace, capital expenditures to depreciation by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Commercial Engines & Services (CES) | 1.24 | 1.16 | 0.96 | 0.44 | — |
| Defense & Propulsion Technologies (DPT) | 1.20 | 0.90 | 0.99 | 1.03 | — |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of segment capital expenditures relative to depreciation reveals differing patterns between the Commercial Engines & Services (CES) and Defense & Propulsion Technologies (DPT) segments. The ratio, calculated as capital expenditures divided by depreciation, indicates the level of investment in maintaining and expanding segment assets compared to the expense recognized for the use of those assets.
- Commercial Engines & Services (CES)
- The CES segment demonstrates a clear upward trend in the ratio, beginning at 0.44 in 2022 and increasing to 1.24 in 2025. This suggests a growing investment in capital assets relative to depreciation within this segment. The substantial increase from 0.44 to 0.96 between 2022 and 2023 indicates a significant shift towards increased capital spending, which continues at a more moderate pace through 2025. This could reflect expansion plans, modernization efforts, or anticipated growth in service demand.
- Defense & Propulsion Technologies (DPT)
- The DPT segment exhibits a more volatile pattern. The ratio begins at 1.03 in 2022, decreases to 0.90 in 2024, and then rises to 1.20 in 2025. The initial decline suggests a period where depreciation expense exceeded capital expenditures, potentially due to asset reaching the end of their useful life or a temporary reduction in investment. However, the subsequent increase in 2025 indicates a renewed focus on capital investment, bringing the ratio above its initial level. This fluctuation may be linked to the cyclical nature of defense contracts and associated project timelines.
In summary, while both segments show increases in the ratio by 2025, the pathways differ. CES demonstrates consistent growth, while DPT experiences a period of decline before recovering and ultimately surpassing its initial ratio. These differing trends suggest distinct investment strategies and operational characteristics between the two segments.
Segment Capital Expenditures to Depreciation: Commercial Engines & Services (CES)
GE Aerospace; Commercial Engines & Services (CES); segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Property, plant and equipment additions | 498) | 431) | 343) | 160) | —) |
| Depreciation and amortization | 402) | 370) | 356) | 362) | —) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.24 | 1.16 | 0.96 | 0.44 | — |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Property, plant and equipment additions ÷ Depreciation and amortization
= 498 ÷ 402 = 1.24
Analysis of segment capital expenditures to depreciation for the Commercial Engines & Services (CES) segment reveals a notable upward trend over the observed period. Property, plant and equipment additions began to be reported in 2022, increasing consistently through 2025. Depreciation and amortization remained relatively stable between 2022 and 2023, then exhibited a moderate increase through 2025.
- Property, Plant and Equipment Additions
- Reported property, plant and equipment additions were not available for 2021. Beginning in 2022, additions were 160 US$ millions, increasing to 343 US$ millions in 2023, 431 US$ millions in 2024, and reaching 498 US$ millions in 2025. This indicates a consistent and accelerating investment in the segment’s fixed assets.
- Depreciation and Amortization
- Depreciation and amortization was 362 US$ millions in 2022, decreasing slightly to 356 US$ millions in 2023. It then increased to 370 US$ millions in 2024 and further to 402 US$ millions in 2025. The increase in depreciation suggests that the recent capital investments are beginning to contribute to the depreciation expense.
- Segment Capital Expenditures to Depreciation
- The ratio of segment capital expenditures to depreciation was not available for 2021. In 2022, the ratio was 0.44, indicating that capital expenditures were less than half of the depreciation expense. This ratio increased significantly to 0.96 in 2023, approaching parity between capital expenditures and depreciation. The ratio continued to rise, reaching 1.16 in 2024 and 1.24 in 2025. This demonstrates that capital expenditures have consistently exceeded depreciation expense, suggesting a growing investment in the segment’s asset base relative to the current depreciation charge. This could indicate modernization efforts, expansion plans, or a shift towards more capital-intensive technologies.
The increasing trend in the capital expenditures to depreciation ratio suggests a strategic focus on growth and investment within the Commercial Engines & Services segment. Continued monitoring of these trends will be important to assess the long-term impact on the segment’s financial performance.
Segment Capital Expenditures to Depreciation: Defense & Propulsion Technologies (DPT)
GE Aerospace; Defense & Propulsion Technologies (DPT); segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Property, plant and equipment additions | 184) | 135) | 145) | 149) | —) |
| Depreciation and amortization | 153) | 150) | 147) | 144) | —) |
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | 1.20 | 0.90 | 0.99 | 1.03 | — |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Property, plant and equipment additions ÷ Depreciation and amortization
= 184 ÷ 153 = 1.20
Analysis of segment capital expenditures to depreciation for the Defense & Propulsion Technologies segment reveals a fluctuating pattern over the observed period. Property, plant and equipment additions and depreciation and amortization figures are available beginning in 2022, allowing for a trend analysis of the calculated ratio from that point forward.
- Segment Capital Expenditures to Depreciation
- The segment capital expenditures to depreciation ratio began at 1.03 in 2022, indicating that capital expenditures slightly exceeded depreciation and amortization expense. A slight decrease was observed in 2023, with the ratio falling to 0.99, suggesting a near balance between capital spending and the expensing of existing assets.
- Further decline occurred in 2024, with the ratio reaching 0.90, signifying that depreciation and amortization expense exceeded property, plant and equipment additions. This suggests a period of comparatively lower investment in fixed assets relative to the depreciation of the existing asset base.
- However, a notable increase is evident in 2025, with the ratio rising to 1.20. This indicates a substantial increase in property, plant and equipment additions relative to depreciation and amortization, suggesting a renewed focus on capital investment within the segment.
Property, plant and equipment additions demonstrate an increasing trend from 2022 to 2025, starting at US$149 million and reaching US$184 million. Depreciation and amortization also increased steadily throughout the period, moving from US$144 million in 2022 to US$153 million in 2025. The interplay between these two figures drives the observed fluctuations in the capital expenditures to depreciation ratio.
The shift from a ratio below 1.0 in 2023 and 2024 to above 1.0 in 2025 warrants further investigation to understand the drivers behind the increased capital investment. This could be due to planned expansions, technology upgrades, or replacement of aging assets within the Defense & Propulsion Technologies segment.
Revenues
GE Aerospace, revenues by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Commercial Engines & Services (CES) | 33,314) | 26,881) | 23,855) | 18,813) | —) |
| Defense & Propulsion Technologies (DPT) | 10,554) | 9,478) | 8,961) | 7,989) | —) |
| Corporate & Other | 1,987) | 2,343) | 2,532) | 2,337) | —) |
| Total | 45,855) | 38,702) | 35,348) | 29,139) | —) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The reporting segments demonstrate consistent revenue growth between 2022 and 2025. The largest segment, Commercial Engines & Services, exhibits the most substantial increase in revenue over the period. While revenue figures are unavailable for 2021, a clear upward trajectory is evident across all segments from 2022 onwards. Total revenue increased steadily throughout the analyzed timeframe.
- Commercial Engines & Services (CES)
- Revenue for this segment increased from US$18,813 million in 2022 to US$33,314 million in 2025, representing a growth of approximately 77.1%. The rate of increase appears to be accelerating, with larger absolute gains observed between 2023-2024 and 2024-2025 compared to the initial 2022-2023 period.
- Defense & Propulsion Technologies (DPT)
- Revenue for this segment grew from US$7,989 million in 2022 to US$10,554 million in 2025, an increase of approximately 32.2%. Growth in this segment is more moderate and consistent compared to CES, with relatively similar absolute increases each year.
- Corporate & Other
- This segment experienced an initial increase in revenue from US$2,337 million in 2022 to US$2,532 million in 2023, followed by a decline to US$1,987 million in 2025. This represents an overall decrease of approximately 14.8% from 2022 to 2025. This segment is the only one to demonstrate a decreasing revenue trend.
- Total Revenue
- Total revenue increased from US$29,139 million in 2022 to US$45,855 million in 2025, representing a growth of approximately 57.7%. The growth rate is influenced heavily by the strong performance of the Commercial Engines & Services segment.
The overall trend indicates a strong period of revenue expansion, primarily driven by the Commercial Engines & Services segment. The Corporate & Other segment presents a contrasting trend, warranting further investigation to understand the factors contributing to its decline.
Segment profit (loss)
GE Aerospace, segment profit (loss) by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Commercial Engines & Services (CES) | 8,861) | 7,055) | 5,643) | 4,164) | —) |
| Defense & Propulsion Technologies (DPT) | 1,296) | 1,061) | 908) | 976) | —) |
| Total | 10,157) | 8,116) | 6,551) | 5,140) | —) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment profit demonstrates a clear upward trajectory across all reported segments between 2022 and 2025. The Commercial Engines & Services (CES) segment exhibits the most substantial growth, while the Defense & Propulsion Technologies (DPT) segment shows a more moderate, yet consistent, increase. Total segment profit mirrors the positive trends observed in its constituent parts.
- Commercial Engines & Services (CES)
- The CES segment experienced significant growth, increasing from US$4,164 million in 2022 to US$8,861 million in 2025. This represents a cumulative increase of approximately 113% over the observed period. The rate of growth appears relatively consistent year-over-year, suggesting sustained demand and/or successful operational improvements within this segment.
- Defense & Propulsion Technologies (DPT)
- The DPT segment also shows positive growth, albeit at a slower pace than CES. Profit increased from US$976 million in 2022 to US$1,296 million in 2025, a cumulative increase of approximately 33%. While there was a slight decrease in profit from 2022 to 2023, the segment recovered and continued to grow in subsequent years.
- Total Segment Profit
- Total segment profit increased from US$5,140 million in 2022 to US$10,157 million in 2025, representing a cumulative increase of approximately 98%. This growth is driven by the strong performance of both the CES and DPT segments. The overall trend indicates improving profitability across the company’s reportable segments.
The absence of profit figures for 2021 limits the ability to assess the initial starting point for these trends. However, the consistent growth observed from 2022 through 2025 suggests a positive operational and market environment for these segments.
Property, plant and equipment additions
GE Aerospace, property, plant and equipment additions by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Commercial Engines & Services (CES) | 498) | 431) | 343) | 160) | —) |
| Defense & Propulsion Technologies (DPT) | 184) | 135) | 145) | 149) | —) |
| Corporate & Other | 471) | 354) | 278) | 265) | —) |
| Total | 1,153) | 920) | 766) | 574) | —) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Property, plant, and equipment additions increased significantly across all reportable segments between 2022 and 2025. The largest absolute increase in investment occurred within the Corporate & Other segment, followed by Commercial Engines & Services. While Defense & Propulsion Technologies experienced growth, its rate of increase was less pronounced than the other two segments, with a slight decrease observed between 2022 and 2023 before resuming growth.
- Commercial Engines & Services (CES)
- Additions to property, plant, and equipment in this segment demonstrate a consistent upward trend, rising from US$160 million in 2022 to US$498 million in 2025. This represents a substantial compound annual growth rate, indicating significant investment in expanding or upgrading capabilities within this business unit.
- Defense & Propulsion Technologies (DPT)
- This segment’s investment pattern is more variable. Additions were US$149 million in 2022, decreased to US$145 million in 2023, and then declined further to US$135 million in 2024. However, a notable increase to US$184 million is observed in 2025, suggesting a renewed focus on capital expenditure within this segment towards the end of the period. The initial decline followed by a strong recovery suggests potential project-based investment cycles.
- Corporate & Other
- The Corporate & Other segment exhibits the most substantial growth in property, plant, and equipment additions, increasing from US$265 million in 2022 to US$471 million in 2025. This considerable expansion may reflect investments in shared services, infrastructure upgrades, or support for growth initiatives across the broader organization. The consistent growth suggests a strategic, ongoing investment program.
- Total Investment
- Overall, total property, plant, and equipment additions increased from US$574 million in 2022 to US$1,153 million in 2025. This nearly doubles the investment over the observed period, indicating a company-wide commitment to capital expenditure and potential future growth. The accelerating growth rate in total additions from 2023 onwards suggests an intensification of investment activity.
Depreciation and amortization
GE Aerospace, depreciation and amortization by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Commercial Engines & Services (CES) | 402) | 370) | 356) | 362) | —) |
| Defense & Propulsion Technologies (DPT) | 153) | 150) | 147) | 144) | —) |
| Corporate & Other | 307) | 314) | 294) | 340) | —) |
| Total | 862) | 834) | 797) | 846) | —) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Depreciation and amortization expense across reportable segments exhibited varied trends between 2022 and 2025. Overall, total depreciation and amortization increased from US$846 million in 2022 to US$862 million in 2025, though not consistently year-over-year.
- Commercial Engines & Services (CES)
- Depreciation and amortization within the CES segment began at US$362 million in 2022. A slight decrease to US$356 million was observed in 2023, followed by increases to US$370 million in 2024 and US$402 million in 2025. This indicates a generally increasing trend within this segment over the analyzed period.
- Defense & Propulsion Technologies (DPT)
- The DPT segment demonstrated a consistent upward trend in depreciation and amortization. Starting at US$144 million in 2022, it rose to US$147 million in 2023, US$150 million in 2024, and reached US$153 million in 2025. This represents a steady, albeit modest, increase annually.
- Corporate & Other
- Depreciation and amortization for the Corporate & Other segment showed more volatility. It began at US$340 million in 2022, decreased to US$294 million in 2023, then increased to US$314 million in 2024, and slightly decreased again to US$307 million in 2025. This segment’s expense appears less predictable than the other two.
The increase in total depreciation and amortization from 2022 to 2025 was not linear. A decrease was noted from 2022 to 2023 (US$846 million to US$797 million), followed by increases in subsequent years (US$834 million in 2024 and US$862 million in 2025). The CES segment contributed most significantly to the overall increase, while the Corporate & Other segment exhibited the most fluctuation.